Arabtec to Focus Investment on Oil and Gas Installation BusinessZainab Fattah
Arabtec Holding Co. will use most of the proceeds from a rights offer and bond sale to bolster its oil and gas installation business.
Arabtec, the United Arab Emirates’ biggest construction company, last month announced a plan to raise 6.4 billion dirhams ($1.74 billion). The company will expand its Target Engineering unit “through geographic growth and some acquisitions,” giving it a better chance of winning contracts worth $7 billion, according to a statement today.
The company, which helped build the world’s tallest tower in Dubai, is also expanding its affordable housing, power and infrastructure units after Abu Dhabi-based Aabar Investments increased its direct stake to 21.6 percent. Arabtec plans to raise $650 million in a rights offer this year and, if necessary, will carry out a share sale of a similar size next year, the company said.
Arabtec scrapped a plan to sell convertible bonds and may instead issue $450 million of bonds this year or next if funding is needed, according to today’s statement.